Abstract:Purpose-In developing countries, the most important macroeconomic variable shaping individuals' expectations for economic stability is the nominal exchange rate. For this reason, the first impact of central banks monetary policy implementation results comes out at nominal exchange rate. In this study, the relationship between the nominal exchange rate and the gross foreign exchange reserves of the central bank has been investigated. Methodology-In this study, Dickey-Fuller (1981, ADF) and Phillips-Perron (198… Show more
“…Furthermore, it is considered a leading study that examines the dynamic link between three important macroeconomic and financial stability indicators as CBR, CDS spreads, and FX rates simultaneously. It is acknowledged that various studies have examined the link between some of these variables [ 24 , 27 , 32 ], however, any of these studies have not examined these three variables at the same time. Moreover, Turkey has not been comprehensively explored for these indicators by using high-frequency data.…”
“…Furthermore, it is considered a leading study that examines the dynamic link between three important macroeconomic and financial stability indicators as CBR, CDS spreads, and FX rates simultaneously. It is acknowledged that various studies have examined the link between some of these variables [ 24 , 27 , 32 ], however, any of these studies have not examined these three variables at the same time. Moreover, Turkey has not been comprehensively explored for these indicators by using high-frequency data.…”
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